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Chapter 3, Problem 3.7P

Learning Goals 1

P3-7 Initial sale price of common stock Hudson-Perry Recordings Inc. has one issue of preferred stock and one issue of common stock outstanding. Given their stockholders’ equity account that follows, determine the original price per share at which the firm sold its single issue of common stock.

Stockholders’ Equity ($000)

Preferred stock $225
Common stock ($0.1 0 par, 1,400,000 shares outstanding) 140
Paid-in capital in excess of par on common stock 19,460
Retained earnings 1,800
Total stockholders’ equity $21,540
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Chapter 3 Solutions

Principles of Managerial Finance, Student Value Edition Plus MyLab Finance with Pearson eText - Access Card Package (15th Edition) (Pearson Series in Finance)

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Stockholders Equity: How to Calculate?; Author: Accounting University;https://www.youtube.com/watch?v=2jZk1T5GIlw;License: Standard Youtube License